Bizarre Creations is the leading independent developer with a proven track record in developing highly successful and influential original properties, especially in the racing field. They are one of the most innovative and creative studios in the industry, and we are very excited to welcome this talented creative team to Activision.”

Bizarre Creations is about to release the fourth installment in its Project Gotham Racing franchise, and is currently working on next-gen shooter The Club for Sega.

Martyn Chudley, Bizarre Creations MD, said of the deal: Our goal at Bizarre Creations has always been to do all we can to nurture our creative and passionate teams, who excel at and enjoy what they do. Activision's independent studio model will continue giving us creative freedom to build exciting new brands.

Their financial support and marketing prowess will also enable us to build upon the commercial success that we currently enjoy, and take the company – and our games – to an even higher level.”

Activision has stated that the first software to emerge from the partnership will not appear until fiscal year 2009, and that Bizarre will remain in Liverpool. It also added that Project Gotham Racing 4 would be the studio's last game for Microsoft.